The FTC’s “Junk Fees” Rule + Multifamily Housing
Written by: Jules Flesner
In May 2025, the FTC’s new “Junk Fees” Rule officially took effect. If you missed the headlines, perhaps you noticed when booking: hotels, short-term rentals, and event ticket sellers are now required to disclose all fees upfront. But here’s the part that didn’t make as many headlines—multifamily apartments and rental housing are exempt.
That doesn’t mean commercial real estate is off the hook. The FTC still enforces its long-standing ban on unfair or deceptive practices. If fees are hidden or misleading, apartment operators could still face federal action.
State Laws are Swooping in Fast
In early 2025, the FTC and Colorado sued America’s largest multifamily property management company for allegedly advertising low base rents but revealing fees (like trash or package delivery) only at lease signing. Regulators + renters have made it clear: transparent pricing is expected.
Several states passed fee transparency laws in 2025 that directly impact multifamily owners + marketing, leasing and support teams.
Colorado’s HB25-1090 (effective Jan 1, 2026) will drastically change how property managers, marketing/leasing teams, and property management software display apartment ads.
Property websites, corporate websites, internet listings and outreach collateral must include all mandatory fees in one total price that’s more prominent than any other number. Landlords can’t charge tenants for property taxes, common area upkeep, or payment processing fees (unless there’s a free option). Utility costs can be passed through, but only with very small markups.
Connecticut, Massachusetts, Virginia, Washington also passed variations of deceptive pricing and fee transparency laws in 2025, with similar themes: all-in advertised pricing, restrictions on add-on fees, and stricter rules around utilities and common charges.
California – AB 1248 (Proposed) would require charges like trash, pest control, valet trash, and common area utilities to be bundled into rent. Limited exceptions exist for water and sewer billing. Effective date is currently slated for April 1, 2026 (which happens to be my birthday- No joke!).
In commercial real estate, transparency isn’t optional. Whether required by state law or simply expected by regulators and renters, clear upfront pricing builds trust and mitigates legal risk. The outdated practice of advertising the lowest base rent is, at minimum, tone-deaf with prospective customers and renters.
The practice of advertising the lowest base rent is dead. I’m not sure what other proof you need to take this seriously than a federal government agency tag teaming a state to body-slam America’s largest landlord.
I’ll add that, along with a total price including all mandatory fees, new best practice is to present optional fees too with clear instructions on how to avoid them. And always disclose the full price of any product or service before asking a renter or consumer for personal information.
One last best practice: Always check with your local legal counsel for guidance on your legal obligations and compliance. I am not an attorney. A Vermillion Informative Post is not legal advice. On a related note, I actually had a full-tuition scholarship to law school but turned it down (still not joking) to pursue a path in advertising, design, styling + communications.
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Disclaimer: This post is for informational purposes only and is not legal advice. Always consult a qualified attorney for guidance on your business and compliance related to pricing transparency, software and emerging technology. I am not an attorney. I am an award-winning creative visionary who makes people, businesses, and all their legal policies and HR manuals and training materials and sales support collateral look really freakin’ sharp so their companies survive + thrive in this strange new AI era we’re suddenly in.